Features of Reverse mortgage

Posted by Rainmaker Reverse on September 4th, 2019

Features of Reverse mortgage

 A Reverse Mortgage Loan is that which is secured over residential property and enables the borrower to access the value of the property. The house of the borrower cannot be taken away from him even if he fails to pay the loan until and unless they leave the house that’s why it is different from equity loan. There is no need for monthly payments, you can live in that house without mortgage payments and sometimes the owner gets the money for other purposes. Its loan is paid when the borrower leaves the house or sells it.

A reverse mortgage loan is also known as a flexible loan product that is used in different ways by the borrowers. This loan can be used in households with financial needs or use it as a source of regular income during the retirement period or as a financial tool.

This is loan is quite different from traditional loans as it is insured by the federal government because sometimes the value of the loan is more than the house when it is sold and the remaining loan is covered by government insurance. A reverse mortgage gives you the advantages of its different disbursement as every person has different needs. You can choose from the full or partial sum, line of credit, monthly payment or combination o these.

These are the basics of a reverse mortgage:        

• You should be 62 years or above
• You should have equity in the property
• You get money based on your equity
• When you sell the property or you pass away your loan is paid

You cannot use more than 80 percent of your home’s equity.  

A reverse mortgage calculator can be used for calculating how much money you can borrow or what it will cost you. To use this calculator you should have the following details:

• Age: more your age more equity you get
• Value of property: you can borrow the money of your property’s value, if you don’t know the value you can use the estimated value
• Estimate of your property’s future value: lenders go with the 3%, you can choose low, medium or high or insert the value according to the future value.
• Interest rate: you can add the interest rate of your choice
• Payment options: you can get paid in a lump sum or monthly

Reverse Mortgage Rates also known as the interest rate is a percentage amount that is the price paid by the borrower for the loan. Adjustable and fixed rates are the two types of rate. Adjustable and fixed rated are given when you buy a house for taking a reverse mortgage loan. Adjustable interest rates are those which can be adjusted according to the customer’s demand and fixed interest rates remain the same they cannot be changed.

Rainmaker reverse is the best reverse mortgage companies as we have excellent services. We have trained brokers and loan originators who help you in getting loans without any hassle.